USD/JPY: Further weakness emerges below 126.90 – UOB
|FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang see USD/JPY facing extra downside pressure once 126.90 is cleared.
Key Quotes
24-hour view: “While we expected a softer USD yesterday, we were of the view that ‘any weakness is expected to face solid support at 126.90’. USD subsequently dropped to a low of 127.01 before rebounding. Downward pressure has eased and USD is likely to trade sideways for today, expected to be within a range of 127.20/128.20.”
Next 1-3 weeks: “There is not much to add to our update from yesterday (26 Apr, spot at 127.60). As highlighted, the risk a deeper pullback in USD has increased. A clear break of 126.90 could lead to a pullback to 126.30. At this stage, the chance for a clear break of 126.90 is not high but it would remain intact as long as USD does not move above 128.50 (‘strong resistance’ level was at 128.80 yesterday.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.